Loan will be cheaper
If you are thinking of taking a home loan then this news is for you only. After the repo rate cut by RBI, another government bank of the country, Punjab National Bank, has announced a cut in its interest rates. State-owned Punjab National Bank (PNB) has said that it has reduced its repo linked loan rate (RLLR). This cut has been made a day after the Reserve Bank of India (RBI) reduced the repo rate by 25 basis points.
In the information given to the stock exchange on Saturday, December 6, PNB said that it is making changes to its RLLR with immediate effect. The bank said that PNB RLLR has been reduced from 8.35% to 8.10%, which also includes an additional charge of 10 basis points. Since RLLR is also linked to the home loan, it is expected that the EMI of the home loan may also be reduced. However, there has been no change in the Marginal Cost of Lending Rate (MCLR) and Base Rate of PNB. PNB has made this rate cut after RBI reduced the repo rate by 25 basis points in the MPC meeting to be held in two months on Friday.
The six-member Monetary Policy Committee, led by RBI Governor Sanjay Malhotra, unanimously voted to reduce the repo rate by 25 basis points to 5.25% and maintained a neutral stance, leaving the possibility of further rate cuts open. This is the fourth rate cut by the Central Bank since February 2025. Earlier, the rates were not changed in the MPC meetings held in August and October.
What does PNB RLLR rate cut mean?
The 25 point reduction in PNB’s RLLR rate means that since it is linked to the RBI repo rate, your home loan interest rate will also be lower. This means that you will have to pay lower EMI on your home loan. The rate of RLLR is changed every three months. That means, if your EMI started in October, then the effect of this rate cut will be visible in January. This decision of PNB comes after the steps of other banks like Bank of India and Indian Bank, which had announced their new home loan interest rates. Indian Bank reduced its repo-linked loan rate from 8.20% to 7.95%, a reduction of 25 points.
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